Tom Brokaw explains the relationship between Canada and The United States, in a pre-recorded short film that aired on NBC prior to the Opening Ceremonies of the 2010 Winter Olympic Games in Vancouver, British Columbia, Canada on Feb. 14th, 2010. [more]
Before it was unemployment, health care or carbon emissions that preoccupied politicians, foreclosure prevention was among President Obama’s top priorities when his term began just over one year ago. [more]
WASHINGTON — A record drop in foreign holdings of U.S. Treasury bills in December sent a reminder that the government might have to pay higher interest rates on its debt to continue to attract investors. [more]
China reportedly is ready to shed risky dollar-denominated assets from its reserves, holding on to only instruments guaranteed by U.S. government.
A Communist Party directive leaked to the Chinese-language edition of the Asia Times said dollar reserves should be limited to U.S. Treasuries or agency mortgage debt such as Freddie Mac that has Washington's backing.
Analysts say the move signals Beijing's worries that trouble is brewing. [more]
Investing guru Gary Shilling, president of A. Gary Shilling & Co., says caution is the name of the game for investors, because there's as much as a 50 percent chance stocks will crash to a new low this year as consumer spending continues to be weak.
“I think you’ve got to be very, very cautious,” he says.
“Stock markets rallied like a scalded dog from last March, but, to me, they’ve gotten way ahead of themselves,” Shilling told Ticker Tech. [more]
The dollar’s recent rally, which has taken it to a six-month high, will soon fade against Asian and commodity currencies, says star economist Nouriel Roubini.
Commodity currencies include the Brazilian real, Canadian dollar and Australian dollar.
He anticipates a 15 percent to 20 percent drop by the greenback against these currencies in the next two to three years.
And what will cause the move? [more]
The Standard & Poor’s 500 Index may retreat 20 percent from a 15-month high because stocks are expensive given prospects for economic and profit growth, says investing guru Marc Faber, publisher of the Gloom, Boom and Doom newsletter.
“The market has become overbought,” Faber told Business Week. “There isn’t a meaningful improvement in the economy taking place.”
The benchmark index for U.S. stocks, which closed at 1,150.23 on January 19, may fall to 920, says Faber, who recommended buying stocks in March, before the biggest rally since the Great Depression. [more]
Soaring deficits still threaten the U.S.’s triple-A bond rating, Moody's Investors Service says. [more]
The outlook for the U.S. economy is “very dismal” because growth is coming from replenishing depleted inventories while stimulus measures are largely fueling consumption, says New York University economist Nouriel Roubini.
Most Americans will still feel like they are in a recession as unemployment rates will rise from current levels of around 10 percent, he says.
“I think we're in trouble,” Roubini told Bloomberg. [more]
Former Federal Reserve Chairman Paul Volcker will call for Congress to "define the business of commercial banks" and set policies to resolve large, complex failing institutions with "euthanasia not a rescue,” according to his remarks prepared for delivery before a Senate panel Tuesday and obtained from a Capitol Hill source.
Volcker is scheduled to appear before the Senate Banking Committee to lay out an Obama Administration proposal named after the former Fed chair. The "Volcker Rule" would prevent commercial banks from engaging in proprietary trading or in business with hedge funds or private equity funds. [more]
Investment legend Jim Rogers says that China’s overall economy doesn’t represent a bubble, though he acknowledges that some urban real estate is overheated there.
Property prices should decline in Hong Kong and Singapore, he says.
“If anything is a bubble in the world, that and U.S. government bonds are certainly very overpriced,” he told Bloomberg.
But China’s economy as a whole isn’t in bubble territory, Rogers says. [more]